liquidation. unless a white knight steps forward to buy the company. the borders has the right to sell all of its assets. after a bid to buy the company fell through last week. liquidation is scheduled to start on friday. interesting there. 11,000 people could lose their jobs. >> we'll continue to follow earnings this week. good to see you. we'll see you tomorrow morning. "american morning" continues right now. >> good morning. we're following the latest on the u.k. phone hacking scandal. i'm kiran chetry. in just hours, rupert murdoch will face parliament. we're live in london. >> no break in the debt ceiling talks but the white house insists that backstage progress is being made to reach a deal before the august 2nd default deadline on this "american morning."

good morning to you. thank you for being with us. 6:00 a.m. in new york this morning. tuesday, july 19th. i was hearing that in parts of iowa the heat index felt like 130 yesterday. it's been brutal out there. >> even this morning on the east coast, it felt different. it felt hotter. we'll be covering that. we're watching that and millions are watching with a worldwide media empire hanging in the balance rupert murdoch is just hours away from facing his defining moment. in less than four hours, murdoch, his son and former top newspaper executive will appear before the british parliament. >> they will be asked what they knew about this phone hacking scandal that's growing wider by the day. it's threatening to take down news corp and perhaps murdoch himself. >> and the question is what they are going to be called upon to explain, what they're going to be compelled to explain and how that's different from being called before congress. who is going to be asking the

questions today and do we have some sense of specifically what they'll be asking? >> reporter: well, the head of the committee is going to be the one who is leading this. we do expect that lawmakers will basically be grilling rupert murdoch, james murdoch and rebekah brooks on how much they knew about these phone hacking allegations and when did they know it and why didn't they put a stop to it sooner or be more forthcoming. they told lawmakers earlier it was one rogue reporter, an isolated incident and it didn't did any further than that. we know of course that it turns out that thousands of people may have had phone mail messages hacked and lawmakers want to get to the bottom of how much each of them knew. >> the other question is this whistle-blower found dead yesterday tragically. police are looking into that. what is the latest there? >> reporter: what we know is that basically police have

confirmed that a man was found dead at his apartment. that man is believed to be the whistle-blower for news of the world. he confirmed that the editor of the paper not only knew about the phone hacking but actively encouraged it from his reporters. he was the only whistle-blower to really go public and confirm that this was the case. now, what we understand from police is that he was found dead at his apartment while his death is unexplained, they say it is not suspicious at this point but a police investigation is ongoing. >> the other part of the story so many facets to it is the corruption allegations at scotland yard, the police agency. we're starting today's testimony with the police. >> reporter: that's right. two of the top cops in the country, former metropolitan police commissioner already

resigned and then john yates in charge of the phone hacking investigation review he too resigned yesterday. this is how far the scandal has gone. it cast a shadow over scotland yard and everyone now especially lawmakers are trying to get to the bottom of just how much corruption was there, how cozy was the relationship between news of the world and scotland yard. >> it's going to have implications for david cameron's government. andy coleson is being alleged to have known about this when he was heading up the newspaper. >> reporter: this goes to show how it goes to the very hard of politics here basically andy was the chief spin doctor for prime minister david cameron so this is a major embarrassment for him and it's so bad that he's coming back to england early from his trip to south africa specifically to address these phone hacking allegations at a

special day of parliament tomorrow. >> we'll be following the latest with you. thanks so much. >> we had great reporting there also from richard qwest. >> his voice carries. >> he has a loud voice. we have a number of people covering this story this morning. >> 7:00 some of the testimony begins. 7:30 we'll hear from the police who resigned amidst this scandal and continue to follow the latest. his days in news corp may have been numbered and this may be before the scandal broke. the company is considering replacing murdoch with its current chief operating officer. many insiders say if things don't go well on the stand today that move could be pushed ahead quickly. >> clearly it will be a tough day for rupert murdoch and his son james, testifying. rupert murdoch is an elderly man. whether he leaves this year or

next year or five years, there's been talk about succession plans for him. analysts have been thinking for days it may happen. >> murdoch would stay on the company's chairman if he decides to give up his duties as chief executive officer. >> news corp got a taste of its own medicine yesterday when hackers took control of the sun website. hackers posted a fake news story. visitors were redirected to the twitter feed of a well known hacking group that breached websites belonging to sony, pbs and the u.s. senate. keep it on cnn for live coverage of the parliament hearings. we want to hear from you. our question of the day. do you think that rupert murdoch knew about the phone hacking? send us an e-mail or a tweet. we'll read your comments throughout the morning. 15 days and counting until the deadline for potentially

da disastrous government default. president obama insists thprogrs is being made. >> today republicans will put their plan to a vote linking a debt ceiling increase to a budget balance amendment. >> brianna keilar is following developments and is live at the white house for us this morning. what's it looking like? >> we're expecting this vote today and yesterday president obama issued a veto threat on cut cap balance or ccb. this was something that was more of a statement because as you mentioned, this isn't expected to see the light of day in the senate but house republicans who really have this goal of creating a smaller government and they really want to cut spending and field emboldened by the results of the last election feel like this is what they would like to do even though maybe this is more of just a

statement than anything. the white house's line on this is it would hurt the economic recovery and that it would make substantial cuts to the education system and the like. this is what jay carney said yesterday. >> this is classic washington posturing. this is a measure that's designed to duck, dodge and dismantle. duck responsibility, dodge obligations and dismantle if signed into law but it would require dismantlement of social security, medicare and medicaid. >> the white house trying to put a spin on what house republicans are trying to do. i think the hope of the white house is that this vote will allow some conservatives the ability to have some political cover so they can say they fought for something very conservative and then perhaps

they can vote for the increase in the debt ceiling but republicans are unbending in demands so the white house can't be certain of that. >> the president has continued to say he wants a deal by friday so they can get all of the necessary legislation through. is that looking likely? if we blow by friday without a deal, it starts to weaken the white house i guess. >> reporter: a big deal of deficit reduction obviously is feeling very elusive and chances of doing something like that seem to be very slim at this point. in terms of the debt ceiling, they are very much relying on a plan being worked out by senators reed and mcconnell, top democrat and republican in the senate, to move something forward so the senate can take a lead and the house can then follow suit maybe making some changes. i think right now that's the best hope. i do want to tell you looking at the president's schedule today, it's mighty bare. his normal presidential briefing

and meetings with senior advisers but certainly there's a lot of room built in there for any sort of communication he needs to do with congress. >> right. there was talk they are working through the weekend so they are doing everything possible to come to an agreement. >> over night too. >> u.s. and libya hosting secret face to face talks since the libyan conflict began four months ago. the point of the weekend meeting was to send a clear message to moammar gadhafi that he must go. the libyan side seeing things differently. the spokesman talking to cnn's ivan watson. here's his take. >> is this the first step. >> this is a first step. we welcome any further steps. we are prepared to talk more and explain what is happening in libya and take the matter forward. we don't want to be stuck in the past. >> the gadhafi spokesperson also told cnn that libyan troops will turn the oil city of bragga into

hell rather than thlet it fall into hands of rebel forces. the crews of the space station and "atlantis" had a ceremony yesterday to say good-b good-bye. the hatch was closed. at 2:28 eastern time, "atlantis" undocked from the international space station for the final time. "atlantis" is scheduled to touch down in florida at 5:56 a.m. eastern time on thursday, two days from now. early tomorrow morning the crew of the space shuttle "atlantis" will join us from up there live on "american morning" tomorrow morning at 5:00 a.m. eastern. >> also new this morning, the fbi is teaming up with spanish authorities to take down the biggest international drug ring that europe has ever seen. agents seized $35 million in cash, five dozen luxury cars and 25 real estate properties. more than 20 people are now under arrest.

four in the u.s. authorities say the crime ring smuggled cocaine from colombia to spain and laundered drug money in south florida. congressional investigators putting the fbi and the dea on notice. they have one week to turn over documents related to the controversial fast and furious gun buying operation. the atf program allowed thousands of assault weapons to fall into hands of criminals in mexico. two weapons that were allowed to "walk" may have been used in the killing of a u.s. border patrol agent. add buddy roemer to the list of candidates for president. he'll be the 11th gop candidate to declare. >> japan's women's soccer team met with kan today. hundreds of fans swarmed the airport in tokyo when the team arrived home last night. they won in a stunning pent kick

shootout taking home the first world title for any asian team. >> congratulations to them. this year's world cup final made history in another way. sunday's match set a new record on twitter. twitter users sent messages at the rate of 7,000 tweets per second during the world cup finals. that's more twitter action than during the super bowl, the royal wedding, or the death of osama bin laden. >> that's fascinating to me. >> how do you see the game if you are busy tweeting? >> particularly in games where you wait for something very sudden to happen. up next, 77-year-old u.s. congressman talks about his face to face encounter with an armed home invader. he says no one should go through what his family endured. the so-called thief of the faithful. >> an invasion of bees. 13 minutes after the hour. you name it.

i've tried it. but nothing's helped me beat my back pain. then i tried this. it's salonpas. this is the relief i've been looking for. salonpas has 2 powerful pain fighting ingredients that work for up to 12 hours. and my pharmacist told me it's the only otc pain patch approved for sale using the same rigorous clinical testing that's required for prescription pain medications. proven. powerful. safe. salonpas.

handle more than 165 billion letters and packages a year. that's about 34 million pounds of mail every day. ever wonder what this costs you as a taxpayer? millions? tens of millions? hundreds of millions? not a single cent. the united states postal service doesn't run on your tax dollars. it's funded solely by stamps and postage. brought to you by the men and women of the american postal worker's union. no, it's just for new people.

hey ! chocolate, vanilla or strawberry ? chocolate ! chocolate it is ! yeah, but i'm new, too. umm... he's new... er... than you. even kids know it's wrong to treat new friends better than old friends. at ally bank, we treat all our customers fairly, with no teaser rates and no minimum deposit to open. it's just the right thing to do.

17 minutes past the hour. iowa congressman leonard boswell is thanked god he's alive and hopes no up with has to go through what his family did this weekend. an armed gunman broke into boswell's home on saturday night, confronted his daughter, demanded cash. the 77-year-old boswell says he wrestled the masked intruder to the ground and they tumbled down a flight of stairs before the congressman's grandson pointed a shotgun at the armed gunman forcing him to plea. >> when you're in danger, you have to do something. >> boswell says when he saw the home invader put a gun to his daughter's head, he reacted like any father would. his doctor told him he cracked a

couple ribs but otherwise he's okay. >> it's stunning. glad that ended properly. police have arrested a man who they nicknamed the thief of the faithful. he would wait for people to start praying at a chapel at an airport in italy and then he would rip them off. ironically he was caught from above by a security camera. you can see the whole operation unfold. police say that he would pose as a muslim worshipper who just left the room and would wait for the right time to grab a bag while others working with him caused a distraction. that's nasty. >> texas rangers president and all-time great pitcher nolan ryan underwent tests in a houston hospital last night. the hall of famer says he felt discomfort in his chest on sunday morning. he had a double bypass operation in 2000 and has a family history of heart disease. he's expected to be released in the next two days. bees took over petco park on sunday. we're talking serious bees.

they were calming in the players' jersey and had cody ross doing a funky dance on the field. you can't really see him doing that much dancing. there we go. moving around trying to get the bees out. wow. they were getting him. the bees finally left and let the guys play the game. >> they left to go watch another game? poor guys. look at the giant dust storm that turned phoenix into a light shade of brown on monday. it hit the city during evening rush hour. can you imagine trying to drive in that? the dust wall was 3,000 feet high driven by wind gusts up to 40 miles an hour. flights were delayed and traffic got snarled but the storm cleared within the hour. >> that's the second time within two weeks that the haboob has paid a visit. rob marciano in the extreme weather center. >> we're in monsoon flow. haboob originating from the middle east which has those dust

storms quite a bit. you have to get your car washed obviously getting caught in one of those. no dust storms but heat and humidity. feels like 90 in minnesota. 91 it feels like in chicago. you couple in that dew point which is way up there in some cases over 80 degrees and we have some serious heat indices. it will feel like 110 to 120 in some spots in red areas. excessive heat warnings posted for the western great lakes and the northern plains as the humidity continues. this front, which is making very little progress to get down to the south, along that front we'll see thunderstorms pop up and some areas we saw heavy rain down along the coast. yesterday we had a tornado warning across southern mississippi and heavy rain across louisiana including just outside of new orleans. here is some of the video. torrential rains causing flash flooding there along the streets and folks had a hard time even just getting around by foot. we'll see some of these pop-up thunderstorms from time to time today.

in many case it is will act to cool you off. there were some heavy winds across pennsylvania yesterday. 92 in new york city today. 96 expected in d.c. delays at san francisco, chicago, some thunderstorms in the afternoon expected. d.c. and philadelphia as well. and let's update you on what's going on with tropical storm bret. it strengthened and weakened a bit. it doesn't look healthy. dry air in there. winds working against it. it's being pushed out to sea. there you go. here's the forecast track as issued by the national hurricane center. forecast to stay at tropical storm status. that's good news there. keeping it away from the u.s. is good news although the southeast could use the rain. another steamy one across much of the country. that time of year. middle to end part of july. don't worry. fall will be here soon. give it a couple months. back up to you. >> all right, rob. thank you. >> i can't remember what it's like. i forgot what it's like to be cool. >> yeah. >> you know, temperaturewise.

>> ahead on "american morning," you're in your own little world wandering down the street texting while walking, now in one city it could be a crime and it could cost you. superman will fly solo when d.c. comic relaunches. no ball and chain named lois lane. the man of steel back on the market. 22 minutes after the hour. uld r. of america's number-one puppy food brand? uld r. with dha and essential nutrients also found in mother's milk. purina puppy chow. to your kids' wet skin. new neutrogena® wet skin kids. ordinary sunblock drips and whitens. neutrogena® wet skin cuts through water. forms a broad spectrum barrier for full strength sun protection. wet skin. neutrogena®.

vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve.

minding your business this morning. investors remain concerned about the debt ceiling talks in washington and the debt crisis in europe. markets close lower to start the week yesterday but u.s. stock futures are trading higher right

now boosted by corporate earnings late yesterday and this morning bank of america, wells fargo, goldman sachs, all reporting second quarter earnings before the opening bell. apple and yahoo! will release their earnings after the closing bell this afternoon. news corp ceo rupert murdoch and his son, james, will appear before parliament just hours from now. the company has lost $8 billion until market value since the news broke on july 5th. investors rushing to gold for security amid global concerns of mounting debt in europe and the u.s. gold prices set a new record monday settling above $1,600 an ounce for the first time. borders calling it quick. the bookstore chain could not secure a buyer in time to save it from bankruptcy. 1,600 people will lose their jobs. cisco announcing 6,500 job cuts from vice president levels or higher. the layoffs are part of the plan to streamline the tech business.

"american morning" back right after the break. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems and using state of the art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment we are america's natural gas.

and clean for our communities and the environment when an investment lacks discipline, it's never this obvious. introducing investment discipline etfs from russell. visit russelletfs.com r a prospectus, containing the investment objectives, risks, charges, expenses and other information. read and consider it carefully before investing. you know, the ones who do such a super job, they're backed by the superguarantee®? only superpages®. wherever you are, wherever you're going,

you'll find the super business you need. so next time, let the good guys save the day. get the superguarantee®, only at superpages®. in the book ... on your phone or online.

30 minutes past the hour. a look at our top stories this morning. rupert murdoch and his son along with former news corp executive rebekah brooks set to appear before u.k. parliament. they will answer questions about a phone hacking and corruption scandal threatening murdoch's media empire and his role as ceo of the company. the house is set to vote on a controversial republican plan to address the debt crisis called the cut cap and balance plan calling for deep spending cuts. the white house rejects it as a way of raising the debt ceiling. the deadline for a deal to avoid government credit default is just two weeks away although the president has been saying he wants to get some sort of agreement on the table friday so they can begin the process of

getting legislation going. the beginning of the end of the final shuttle flight in history. the crew of shuttle "atlantis" getting ready to go home. the shuttle undocked from the international space station for the last time ever early this morning. >> the stakes couldn't be higher when rupert murdoch appears before parliament at 9:30 eastern. reports suggesting that days may be numbered as ceo of the corporation. here's brian todd. >> reporter: arrested, questioned for nine hours and then released, rebekah brooks could play a key role into the investigation into the phone hacking scandal. for weeks she was the firewall between the public's fury and rupert murdoch's family. now that she's an ex-employee that faces scrutiny from police and parliament. >> will rebekah brooks bring someone else down in news corporation? >> it's difficult how to see rebekah brooks has any interest

in blaming anyone else in news corporation. she'll fight to clear her own name and make sure she's not responsible for knowing about the phone hacking that went on. >> sarah smith says that's because brooks values her ties to the murdochs or may have her eye on a future editing job elsewhere. brooks' spokesman says she'll answer questions to the best of her ability and won't comment on reports that she has several million dollars coming in severance pay. in any case, the list of the casualties appears to be inching closer to news corporations powerful ruling family. from the outside top police officials paul stephenson and john yates resigned over their handling of the scandal. andy coulson out years ago and out as prime minister's spokesman this year. chief executive of dow jones and publisher of the "wall street journal" is gone. news of the world has closed down. now that rebekah brooks has resigned and been arrested many say that james murdoch, chairman

and ceo of news corp's division in europe in asia is on the firing line. it may come down to where else james murdoch's fingerprints can be found. >> james murdoch made is clear that he paid off a huge amount of money to gordon taylor who had his phone hacked and james murdoch made it clear now that he regards that as an error on his part and he much regrets it. >> reporter: if it's found that james murdoch knew more about the hacking than what's been revealed so far, smith says shareholders, board members, may force his father's hand. >> if they demand that he change the way the company is structures to stop james from taking over, he would have to listen to them. >> reporter: there are reports that independent board members are going further questioning whether a change of leadership is needed. in other words, replacing james murdoch all-together. contacted by cnn, a member of that board called those reports total crap. brian todd, cnn, washington.

>> all right. japan has banned the shipment of cattle from the fukushima region. officials are afraid that radiation from the region could contaminate the beef supply. the area is still recovering from that nuclear accident at the fukushima daiichi nuclear plant triggered by the march 11th earthquake and tsunami. a new jersey rabbi and his wife kidnapped a man and threatened to bury him alive if he did not agree to a traditional jewish divorce. according to court documents, the israeli man was invited to the rabbi's home to discuss work. instead federal prosecutors say he endured hours of violence and threats. wax and his wife face life in prison if convicted. he had to give them -- in judaism when you get divorced, you have to provide a document and wouldn't give his wife the document so she could remarry and showed him a body bag and said pick a divorce or a body

bag. >> a little heavy handed. someone in north carolina hacked into the department of transportation road sign over the weekend. this has happened before. this time they changed the sign to read impeach obama. several drivers stopped to take pictures of that sign. it's since been fixed. earlier this year electronic signs were hacked with warnings about zombies. >> i don't know what to make of that. i think everything would be hacked now. i wouldn't have thought that would be a priority for hackers. watch where you are going or you could pay. philadelphia will crackdown on texting while walking. pedestrians would face $120 for looking at their fines while walking. it's part of a larger program cutting down on bad behavior by drivers. >> you can't text in philadelphia you're in trouble. >> new irony here, charlie sheen is returning to television in a

series entitled "anger management" based on the 2003 movie. the sitcom doesn't have a tv home but there are some analysts say it's destined for basic cable. one major change to "superman." splitsville from louis lane. it will be more realistic story lines but the man of steel is back on the market ladies. >> you remember tang. it was made famous by nasa. >> not invented by nasa. >> made famous. >> why red wine could be the new tang. we'll explain that coming up. >> how one couple says the receipt saved them. we're not talking about money. look at this picture. is that jesus christ on a receipt from walmart? we'll show you more about this on the way back.

t the motorola expert from sprint. its powerful tools help you work faster and smarter so you can get back to playing "angry birds." it lets you access business forms on the go, fire off e-mails with the qwerty keypad, and work securely around the world so you can get back to playing "angry birds." it's the android-powered phone that mixes business with pleasure. so let's get our work done, america, so we can all get back to playing "angry birds." the motorola expert from sprint. trouble hearing on the phone? visit sprintrelay.com. and i count on social security. here's what i'm not... a pushover. right now, some in washington want to make a deal cutting the social security and medicare benefits we worked for. with billions in waste and loopholes, how could they look at us? maybe we seem like an easy target... until you realize... there are 50 million of us. [ female announcer ] tell the politicians: cut waste and loopholes, not our benefits.

if you need to lower your blood pressure, try adding more soy or low-fat dairy to your diet. a new study finds replacing carbohydrates can lower blood pressure. it doesn't change other dietary influences namely sodium because that's the one most people think about. >> with the space shuttle "atlantis" heading home, here's a tip for the crew.

drink red wine. they have capsules you can take now prevent negative effects of negative space flight and weightlessne weightlessness. low gravity makes physical activity impossible. they say it could slow down deterioration until someone can get moving again. they say it's the anti-ageing fountain of youth. >> in space they move around a lot but there's no gravity so you don't get the effect. >> weight bearing nature of gravity isn't there. you can drink wine. you think you need to be sober. >> i'm sure you could take the pills. >> new mexico's governor saying take it from me, beware of bears. one was caught on a security camera roaming around the governor's residence. i would imagine the governor's residence -- >> he was just looking for food. >> new mexico warned residents that the forest fires we've been reporting on for the last couple months have forced bears from their homes into neighborhoods so people are told to take pet

food, bird feeders and garbage cans inside. >> we learned the hard way because of the raccoons. >> they have thumbs. they can pick your lock. >> come right in and open the fridge and start eating. >> they are a different business. >> another reason to always check your receipt. you may find an image that you believe is your savior on it. >> i feel that sounds cynical from you. you don't think the people found the lord on their seat. >> it's better than when people say on their toast. a couple claims that jesus appeared on their walmart receipt and was extra spooky because it didn't show up until three days after they went to the store. >> three days. that's significant. >> i was leaving the kitchen and i looked on the floor and you could just see the receipt like it was looking at me. the more you look at it, the

more like jesus it was breath taking. >> these people say they didn't mess with the receipt at all and only plan to share their blessing with the world. >> u.s. and libyan governments confirm they hold secret face to face talks over the weekend in tu tunisia. >> they have very different views of what was discussed and what is likely to happen next. cnn's ivan watson talked with moammar gadhafi's spokesperson. if you want to take from this that there is some progress, it sounds like the two sides have very different views on this. >> reporter: absolutely. no surprise when you have basically two warring enemies right now that have met for this round of secret face to face talks taking place in tunisia. u.s. state department officials saying it lasted for three hours on saturday, a day after u.s. secretary of state hillary clinton formally recognized the

rebel government in eastern libya as what washington now considers to be the official representative, the official government of the libyan people. of course moammar gadhafi does not agree with it. take a listen to what his spokesman said about these talks last night. is this the first step? >> this is a first step. we welcome any further steps and we are prepared to talk war and explain what's happening in libya and take the matter forward. we don't want to be stuck in the past. we are people who want to move forward all the time for the good of the libyans and the good of the international community. >> who participated? >> if i may, you mknow, it's no the time to name people. it's the first step dialogue. >> it was direct face to face libyan/american talks in tunisia? >> yes. >> on saturday? >> yes. >> okay. thank you.

>> reporter: so if you want to know who attended, the state department says the u.s. ambassador to tripoli who was called way back in december before this crisis began was there and assistant secretary of state. we haven't figured out who gadhafi sent to the talks yet. state department says these were not negotiations and the point was to send a message. gadhafi has to go to pave the way for a democratic political process. the regime here is saying no way and until both sides can overcome this precondition, it looks like the grinding conflict here, a military stalemate has no end in sight. >> it does seem that nato and the u.s. said repeatedly that the only solution is for gadhafi to go. if that's not a point of agreement, do they have enough upon which they can continue negotiations? >> reporter: at this point it

doesn't seem to be one. if that's a precondition coming from washington, you're stuck. in the meantime, the fighting is raging. we have seen five days of bloody fighting in the strategic oil town in the east on the coast between rebel forces and gadhafi. last night gadhafi spokesman said that gadhafi regime will turn that town into hell rather than give it over to its enemies because they consider it to be vital for the future of libya. no end to the fighting in sight. let me point out this morning we heard an explosion, a leaflet bomb dropped by nato. the propaganda war raging as the military conflict continues. >> let us know if there appears to be breakthroughs in this discussion. obviously that will be a sense of relief to a lot of people if they do make any.

ivan watson in tripoli. 47 minutes after the hour. >> we're 15 minutes away from this big day in the u.k. where there are several people who will be facing parliament today. i believe the chief of police, sir paul stephenson is going to be just about ten minutes from now so we'll be listening in on what is said and we'll be just trying to figure out a little bit more about whether people are going to be forthcoming as to what they knew about this hacking scandal. >> and what parliament is trying to figure out. it's different from testifying before congress. about two hours and change from now, rupert murdoch himself and his son and rebekah brooks, his protege will testify before parliament. he'll be grilled by a special committee over evidence of phone hacking and a report from london on the scandal threatening his entire media empire coming up after this break.

rupert murdoch, his son, james and rebekah brooks will appear before parliament in just about ten minutes. they'll face questions about the news corp phone hacking scandal. they are starting to talk at 9:30 a.m. eastern and murdoch's job as ceo could reportedly be on the line along with his media empire. behind the scenes talks continue with house republicans moving on with their plan for

cuts in federal spending in exchange for increasing the debt limit. the u.s. says one-time meeting in libya was to insist that moammar gadhafi must go. libya calls it a first step toward negotiating an end to the nato mission there. summer heat wave sweeping across the u.s. now heading to the east coast. extreme temperatures could reach the mid-atlantic states as soon as tomorrow. right now the midwest is suffering with heat index in some places as high as 126 degrees. nolan ryan hospitalized with chest discomfort. the team says ryan has a pre-existing condition but tests show no new heart problems. ryan is expected to be released some time today or tomorrow. "atlantis" undocked from the international space station this morning for the last time in history and is scheduled to touch down in florida before

sunrise on thursday. "american morning" will be back after a quick break. supervisor is genius...i transfer. transfer! transfer! transfer! transfer! transfer! hello...my name is... peggy? come on!!! hello? want better customer service? switch to discover. ranked #1 in customer loyalty. it pays to discover.

personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. in less than three hours, rupert murdoch will appear before parliament to answer questions about the phone hacking scandal that threatens his media empire. we'll see testimony within ten minutes. >> that's right. the former police commissioner, we'll be hearing from him in eight minutes from now and they're not actually testifying under oath. they are told they are supposed to testify on their honor. different than the way congressional hearings are here if you lie to congress, you face -- >> it's a felony here.

there lawyers say it's unclear what happens to them if they clearly lie. they can do the same thing you can do here. you can refuse to testify if it's going to incriminate you. >> that's right. we'll hear from jeff toobin about that later. >> it's ironic that king of tabloid journalism appearing on the front page of the tabloids all around the world. dan rivers has a look. >> reporter: when big ben strikes 2:30 in london, the bell will be tolling. their appearance before a british parliament committee may be most important hour of their entire careers. the big political beasts in this building are smelling blood even if rebekah brooks' arrest may mean she's unable to shed light on what really happened. hacking victims like former deputy prime minister john prescott think rupert murdoch

has a lot to answer for. >> everybody are scared to death to do anything he doesn't like. he's the spieder der in the midf this web and it's time we took him on. >> reporter: the chairman in charge of the grilling wants to hear why the company told him phone hacking was just the work of a rogue reporter and then later admitted that wasn't true. >> we took evidence from senior executives of news international and james murdoch is now publicly stated the public was misled. parliament takes that seriously. we want to ask him why he's discovered that we've been misled and who misled us and how long he's known about that. >> reporter: for rupert murdoch this isn't a court appearance but it may feel like he's on trial. for years rupert murdoch has been behind numerous cruel tabloid headlines. now suddenly he's on the front page himself and that's a pretty awkward place for a press barron

to be. the target of what they call in britain, the gutter press. dan rivers, cnn, london. >> it's not clear what if anything rupert murdoch will say when he sits before parliament at 9:30 a.m. eastern time. >> his media empire hangs in the balance many people say as does his career as news corp ceo. it leads to the question of the day and question that's central to today's hearing, do you think that rupert murdoch knew about the phone hacking? >> on facebook, benny says he owns several corporations in different countries. t there's no way he can be involved in day-to-day operation of any of them. >> peter says on our blog, don't know if he did or not. the issue should be why he created a work culture that allowed this to happen. news corp needs to be held accountable and that includes the top officers of the organization. >> and on facebook, if he knew what his company was doing, shame on him. if he didn't know, double shame

on him. a lot of different comments this morning. keep them coming. >> send us an e-mail or tweet or contact us on facebook. >> phone hacking hearing just five minutes away. we'll have live coverage coming up after the break. >> i'm a professional golfer on the pga tour and on the road 28 to 30 weeks a year. i've lost my bag so many times. the items i like to have with me are always at least one day of clothes for golf which means all of the way down to the boxers. i usually book my stuff myself. i use kayak.com app on my iphone and look to see what's available before i call the travel agent. for me when i fly out to place especially if it's more than two or three-hour flight, the body goes through that little change of time zone or change in oxygen level on the flight and you just

don't feel the same. so one of my things i try to do when i first get off a long flight is to exercise first. golf has given me the ability and afforded me the opportunity to see some of the neatest places really in all the world. so very lucky to be a traveler. bye-bye, guys. also get a free flight. you know that comes with a private island. really? no. it comes with a hat. you see, airline credit cards promise flights for 25,000 miles, but... [ man ] there's never any seats for 25,000 miles. frustrating, isn't it? but that won't happen with the capital one venture card. you can book any airline anytime. hey, i just said that. after all, isn't traveling hard enough? ow. [ male announcer ] to get the flights you want, sign up for a venture card at capitalone.com. what's in your wallet? uh, it's okay. i've played a pilot before.

we believe doing the right thing never goes unnoticed. liberty mutual insurance. responsibility. what's your policy?

rupert murdoch is about to face britain's parliament. officials in london want to know what he knows about a phone hacking scandal that's rocking his media empire on this "american morning." good morning. it's tuesday, july 19th. welcome to "american morning." christine is off this morning. >> glad you are with us this morning. right now 7:00 in the morning here, there are hearings that are taking place in london and in just 2 1/2 hours we'll hear more from the man behind the global media empire and how much of it will be on the line for rupert murdoch.

>> at 9:30 eastern, rupert murdoch and his son and former top newspaper executive rebekah brooks will appear at the hearing and will be grilled about the phone hacking scandal that could tackle murdoch and his news corp. what are you expecting to see happen this morning? >> reporter: the big ben behind me just chimed the top of the hour. it is midday. this hour we have the former head of scotland yard, the man who resigned just a few days ago, sir paul stephenson before a commons parliamentary committee to explain the relationships between the metropolitan police, scotland yard to you, and rupert murdoch's company. what sort of payments were made by journalists at the news of the world and rupert murdoch's companies? why were there so many

investigations in 2007, 2009, 2010? the police continually looking into allegations of phone hacking and saying again and again there was nothing there to investigate. so the police are as much in this as rupert murdoch and his news corp and that relationship is very much under the microscope at the moment. the chief of police, the former chief of police, will be before the committee now in two hour's time it's rupert murdoch, his son and his former editor. >> it seems to be growing. every day there's something new and disturbing news of the death of sean hoare, one of the first whistle blowers about the hacking going on at some of the newspapers when he worked under andy coulson. what are details on that? >> reporter: all right. so sean gives details to the news of the world. sean hoare's details of what

happened describing the hacking and takes part in a "the new york times" expose in 2010 on the subject and one of those people who again and again and again says that top executives at news international, news of the world, knew what was going on. now, he's also believed to be an alcoholic or was a drug addict. he lived a very lively life. the police say his death is unexplained but not suspicious. he wasn't in good health. whether that could mean suicide or just some form of death because of overindulgence we don't know. whatever way we turn whether to rupert murdoch who only last week in the "wall street journal" said that minor mistakes have been made in the investigation but then says to

the british people, sorry for what has happened. james murdoch who says quite publicly now he didn't know certain facts having told parliament behind me a few years ago they knew everything that was taking place. also if you like public scrutiny will be politicians. they were so far in bed with rupert murdoch and his news corp and now they are being called to account for how they failed to do their jobs in keeping the media honest. >> all right. richard, we'll watch this go on. we'll be coming back to you to see how this develops. i think the whole world is interested in this right now. richard outside of parliament. there's a lot riding on rupert murdoch's performance this morning because days of ceo of news corporation may be numbered. hard to know the veracity of

this. according to bloomberg news, the company is considering replacing murdoch with the current chief operating officer chase carey who you see on the right of your screen. if things don't go ol within the stand today, that move could be made quickly. >> clearly it will be a tough day for rupert murdoch and his son, james, testifying. rupert murdoch is an elderly man. there's been talk about succession plans for him and the report from bloomberg is that chase carey could step up to be ceo. >> according to "the wall street journal" owned by news corporation, the media empire's board has long had a succession plan in place for murdoch. suggestions that the plan has now been accelerated or implemented are not accurate. >> there was talk of this before any of this hacking scandal broke. >> he's not a spring chicken. big company like that, you would

hope they have plans in place. i think that "wall street journal" which came out with a remarkably defensive opinion yesterday attacking those who attacked the company, it is sort of silly to say things like that wouldn't be discussed or accelerated. we know in the business world obviously they have these types of discussions. it's a newspaper i like but "wall street journal" is going off the deep end on this one. >> if he remains chairman, how many symbolically changes. we want to take you inside. as we told you before what was taking place today this evidence session as they call it for the unauthorized tapping or hacking. >> it looks less imposing than we've been talking about. it looks like a small gathering. >> this isn't in the huge hall where you would see members of parliament. this is a select committee on culture media. there's room for 40 to 50 spectators in this room and there will be spillover rooms

where people can follow the proceedings on television. that's paul stephenson. he was the top police chief of the metropolitan police and he's resigned and is being given instructions. >> he resigned july 17th after criticism of the police handling of this scandal and questions about the involvement between these reporters and police and potential payoffs and questions they expect members of parliament to be asking about. some more aggressively than others. this is a political element as well. some labor party members are expected to be extremely aggressive in denouncing the hacking and asking these questions of not only the politician bpolice but rupert murdoch and his son and rebekah brooks. >> in 20 minutes from now we'll speak to cnn senior legal analyst jeffrey toobin about what to expect and what they are

compelled to testify and is it the same as being called before a congressional hearing in the united states and impact on legal ramifications in the united states. >> the other question since rebekah brooks was arrested earlier in the week, would she be compelled to say less on advice of her lawyers and legal team. >> she hasn't been charged at the moment as far as we know. she was arrested and questioned and leareleased on bail. >> keep it here on cnn for live coverage of the hearings. >> now to the showdown over raising the nation's debt ceiling in the united states just 15 days before the government faces default. neither side is ready to blink. president obama is hoping for a deal by the end of the week. >> no deal yet. house republicans are pursuing their own solution with a vote today on a controversial cut, cap and balance as they call it. they want to amend the constitution to say that we can't go over our limit and that we have to have a balanced

budget. sort of as a precursor to approving raising the debt ceiling. a plan the president said he would veto. a lot of meetings and not a lot of movement. >> back channel communications in the white house and congressional leaders staying mum on that. the concern is if there appears to be a lot of talks and not progress, that won't look good. the president issued a veto threat yesterday on what the house is going to take up today. it's very much a political statement because this cut, cap, balance plan is not expected to see the light of day in the senate but house republicans who want a smaller government who feel that they have mandate to do that through the last election where they swept into power in the house say that this is something that would show the u.s. is serious about keeping their fiscal house in order but the white house says this is something that will hurt the economic recovery. it would hurt the education system all across the nation and other programs as well. here's what jay carney said

yesterday. >> what we are witnessing here with this measure is classic washington posturing, theater. this is a measure that is designed to duck, dodge and dismantle. duck responsibility, dodge obligation and dismantle eventually if turned into law but it would require dismantlement of our social safety net, social security, medicare and medicaid. >> reporter: the hope of the white house here is that this vote will allow some republicans to really sort of say that they really pushed for something very conservative perhaps give them political cover so that some of them ultimately can vote to increase the debt ceiling but you've been watching this. house republicans have been very unbending in their demands so it's uncertain if it's going to play out that way. >> all right. we'll stay on top of it with you today. brianna keilar at the white house. >> closing another chapter in shuttle history. the crew of shuttle "atlantis" and crew of the space station exchanged good-byes in a

ceremony yesterday. the shuttle crew attached an american flag to the hatch. that flag flew once before on the first shuttle flight and then the hatch was closed. at 2:28 eastern time "atlantis" undocked from the international space station for the final time. "atlantis" is scheduled to touch down two days from now, 5:56 a.m. eastern time on thursday. early tomorrow morning the crew of the space shuttle "atlantis" will join us from up there live tomorrow at 5:00 a.m. eastern. we'll be chatting with them. >> invasion of bees at the ballpark is hard enough to play baseball in the heat and then a swarm of bees come attack you. chased some players off the field. more video coming up. a wall of dust more than half a mile high swallowing up the city of phoenix. you're watching "american morning." another haboob. 12 minutes after the hour. i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents.

so start your business, protect your family, launch your dreams. at legalzoom.com we put the law on your side. but i did. they said i couldn't fight above my weight class. but i did. they said i couldn't get elected to congress. but i did. ♪ sometimes when we touch ha ha! millions of hits! [ male announcer ] flick, stack, and move between active apps seamlessly. only on the new hp touchpad with webos.

[ announcer ]etween active apps who could resist the call... of america's number-one puppy food brand? with dha and essential nutrients also found in mother's milk. purina puppy chow.

>> let's make something absolutely clear. i do agree with the prime minister when he says this was

entirely different. of course it was entirely different. can i just correct an inaccuracy here. mr. wallace was never employed to be my personal assistant or provide personal advice to me. i know we'll go into this later. he was employed. it was a minor matter. >> welcome back to "american morning." these are live pictures taking place right now from questioning inside parliament in london. you are listening right now to sir paul stephenson. he was the acting commissioner, former head of scotland yard until he resigned july 17th amid criticism of the police handling of this phone hacking scandal and he's answer questions today. he's one of many people called before this committee to answer questions as to their role in what they knew about the latest investigation into the news corp hacking scandal. >> paul stephenson is testifying now. later we'll hear from director of public affairs and internal communication at the metropolitan police otherwise

known as scotland yard at 8:30 eastern we'll hear from john yates, he's also resigned, and then at 9:30, the main event. rupert murdoch, his son james murdoch and rebekah brooks, the former ceo of news international who has resigned and was arrested over the weekend. keep it on cnn all day for live coverage of the hacking scandal hearings. we'll be dipping in from time to time as things develop during this hearing. >> absolutely. bees taking over petco park in san diego right before the padres played the giants on sunday. they were crawling in players' jerseys and swarming all over the outfield. cody ross doing a dance on the field trying to get bees out of his shirt getting help from teammates. you see ross taking it on himself. >> nice to be slapped with a baseball mitt while someone is trying to kill bees. no one got stung. the bees left the field and they were able to continue playing the game. >> look at the giant dust storm

that turned phoenix a light shade of brown on monday. second time we've seen this in last couple weeks. it hit the city during the evening rush. the bust ball was 3,000 feet high driven by wind gusts up to 40 miles an hour. traffic got snarled and flights were delayed. the storm cleared within the hour. a storm otherwise known as an haboob. a wind storm like that. rob marciano is in the extreme weather center for us with the other stuff that we've got going on today. heat mainly that we're concerned about. >> no matter what you call that storm, it leaves your car pretty dirty and shuts down traffic that's for sure. i was just counting number of states under a heat advise. >> reporter: or warnings or watches. heat indices over 110 to 120. that's dangerous levels of heat where it doesn't get that hot that often. certainly not for this long. how long will it last? here's tomorrow. 104 the heat index expected for minneapolis. we start to break it down. cool front clips the northern tier and that will move the heat further down to the south and

east. and build it into the east as well as we get toward the weekend. new york city area will get into this. severe thunderstorms possible across this part of the world along a stationary boundary and tropical storm bret motoring out to sea. not to worry there. back up to you in new york. >> all right. rob, thank you so much. still to come this morning, a gay conservative group asking congresswoman michele bachmann to sit down and talk to them. does she co-own a business that thinks you can convert gay people to straight through prayer. we want to hear what the group's founder wants to hear from the congressman coming up. on our car insurance. great! at progressive,

you can compare rates side by side, so you get the same coverage, often for less. wow! that is huge! [ disco playing ] and this is to remind you that you could save hundreds! yeah, that'll certainly stick with me. we'll take it. go, big money! i mean, go. it's your break, honey. same coverage, more savings. now, that's progressive. call or click today. you know, the ones find a who do a super job? superpages.com®. for local maps, reviews and videos & it's the only local search site with the superguarantee®. so next time, let the good guys save the day. get the superguarantee®, only at superpages®. in the book, on your phone or at superpages.com®.

21 minutes after the hour. minding your business. bank of america announcing nearly $9 billion in losses for the second quarter of this year. the bank says that's due to a recent mortgage security

settlement. wells fargo, goldman sachs also expected to report earnings before the opening bell. apple and yahoo! will release their earnings after the closing bell this afternoon. markets close lower to start the week as investors remain concerned about debt ceiling talks in washington and debt crisis in europe. news corporation ceo rupert murdoch and his son james and rebekah brooks will appear before parliament in about two hours from now. news corp shares closed at a six-month low yesterday. the company has lost about $8 billion in market value since the news broke on july 5th. investors rushing to gold for security amid global concerns of mounting debt in europe and the u.s. gold prices set a new record on monday settling above $1,600 an ounce for first time ever. borders is calling it quits. 1,700 people will lose their jobs as a result.

cisco announcing job cuts. 6,500 workers getting the ax. most from the vice president level or higher. the company announced layoffs as part of the plan to streamline its tech business. "american morning" back after the break. verizon claims its 4g lte is twice as fast as at&t. we're putting them to the test against the speed of a rescue unit. go ! they're downloading a music album. the first network to finish gets rescued. does your phone know that we're racing ? done ! verizon's done ! i've got seven left ! the fastest network in america. verizon. built so you can rule the air. now powering the lg revolution. really? 25 grams of protein. what do we have? all four of us, together? 24.

he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! [ doug ] i got to figure this out. i want to focus on innovation. but my data is doubling. my servers are maxed out. i need to think about something else when i run. [ male announcer ] with efficient i.t. solutions from dell, doug can shift up to 50% of his company's technology spend from operating costs to innovation. so his company runs better, and so does doug. dell. the power to do more.

>> i want to stop saying what that is. it's the white house. washington, d.c., cloudy and 80. that means thunderstorms later this afternoon and a toasty 96. i wouldn't call it toasty. when it's that moist, it's more -- >> soupy. >> yeah. >> sticky. >> it will be hot and what it is in d.c. conservative group that supports gay rights wants to meet with michele bachmann. they accused her and her husband's christian business of encouraging gay clients to

become straight. bachmann supports a constitutional amendment to make marriage something only between a man and a woman. joining us now is the co-founder of go proud. good to see you. you asked for a meeting with michele bachmann. i'm curious why a group that supports gay rights wants to have a meeting with her. she's clear on where she stands. >> one, we're a gay conservative group. so obviously michele bachmann is somebody who has been important in the conservative movement. and so obviously we would want to meet with her. secondly, i think it's important that we have these conversations and we have these dialogues. far too many want to demonize everyone who disagrees with us. we're never going to see progress on issues that we care about unless we engage in a meaningful and heartfelt dialogue with folks. that's what we want to do with congresswoman bachmann. >> you have 11 candidates in the race now. some who do not take as strong

positions about gay rights and gay marriage as michele bachmann does. there's no sense that you're meeting with her to possibly endorse her run. you are meeting with her because she's a presidential candidate and maybe she'll be the nominee. >> our number one goal is defeating barack obama. we plan on working with whoever the nominee of the republican party is. which means it's important for us to sit down and talk with everyone of the candidates who are running for president and that's what we're doing. we're having phenomenal meetings with a lot of the candidates talk about issues that are important to gay conservatives and the future of this country. >> let me just play you this clip from the new hampshire debate and then we can talk about it on the other side. listen to this first. >> i do support a constitutional amendment on marriage between a man and a woman but i would not go into the states to overturn their state law. >> that's michele bachmann's position. if she were the nominee or someone with a view like that

were the nominee, would you work with that candidate to defeat barack obama? does the fact that you're a conservative group overrule the fact that you might have to deal with someone who does not support gay marriage? >> first off, our organization doesn't take a position on marriage outside of saying it ought to be left to the states. so therefore we oppose the type of constitutional amendment that congresswoman bachmann supports. it's too early to talk about who we would endorse or when we would endorse them. >> it's not too early. >> if you are gay and you believe in gay rights and there are a bunch of candidates who say they don't really support gay rights, it's not too early for me to ask if you would support them or not. >> first off, i think -- >> no you wouldn't support them? >> that's not what i'm saying. what i would like to say is there are a whole range of issues that impact gay people that go beyond marriage. where does the candidate stand on the fair tax and personal

savings account and social security and free market health care reforms and all of those things that would improve the lives of average day people. >> most of those have views you would share. ten legislative priorities most of which deal with fiscal issues and most of which are conservative views and most candidates in the race support them. why wouldn't you pick someone who actually says i can be fiscally conservative and i have no problems with gay rights? >> one, i think that everything that's included in our ten-point agenda effects gay people. when my partner and i sit down at night and talk about issues that impact us, we're not talking about hate crimes. we're talking about is taxes and health care and retirement security and that's the types of issues that are impacting average gay families all across this country. so of course we want to meet with all of the conservatives who are talking about those issues and on the fiscal issues that impact gay people, congresswoman bachmann has a good record. obviously we're troubled by some of the things that's been purported that she said which is

why it's important to sit down and talk with her. we want to sit down and talk with all of the gop presidential candidates. our number one goal is defeating barack obama. at the end of the day, we'll work to defeat this president. >> i understand you heard back from michele bachmann's campaign? >> we heard back this morning. we're in the beginning of that conversation. i think that's a positive step forward. i think congresswoman bachmann should welcome an opportunity to sit down and meet with us. >> are you going to ask her about bachmann and associates, the company she runs with her husband? >> we'll sit down and talk about a wide range of issues that would be important to gay conservatives. >> is that one of the issue given that you're gay and she thinks she can make gay people straight through counseling. >> there are a number of things that -- >> why are you dodging questions? i don't understand. >> i'm not dodging questions. >> are you going to answer the question. if she were in front of me i would ask her about this business she runs with her

husband to make gay people straight. >> what issues are important to gay conservatives and that's the issue we'll talk about with congresswoman bachmann. >> do you think you can counsel gay people into becoming straight? >> i think there's a lot of issues important to gay conservatives. >> do you think you can counsel gay people into becoming straight? >> no, i don't. there are a bunch of issues. i know the media loves this issue and it's a side show that distracts from the real issues. >> if you don't ask her, it's okay. you can support who you like. i'm curious that you don't think that's the overarching issue. >> do you think that's of the most important issue? at the end of the day the most important issues to gay conservatives is whether michelle bachmann's husband thinks he can counsel gay into

straight? >> thank you for talking to me. chairman of the board of go proud. >> good conversation. top stories now. rupert murdoch and his son, james, along with rebekah brooks set to appear before parliament. two hours from now they'll sit there. right now these are pictures taking place live right now. you are seeing sir paul stephenson, former head of scotland yard who resigned a couple weeks ago after criticism of police involvement in this phone hacking scandal. they'll answer questions as well. it's an issue that certainly threatening murdoch's media empire and potentially as future role of ceo of the company. >> here in the united states, house republicans are planning a vote on cap, cut and balance plan that would link an increase in the debt ceiling to deep cuts. it's not expected to get through the senate and if it does, president obama threatened to veto it. >> the crew of the shuttle "atlantis" waking up to cold play's "don't panic."

i don't think they are panicking at all. they are getting ready to head home. exciting time as they head home from the international space station. that happened at 2:28 eastern time. "atlantis" is scheduled to shutdown in florida at 5:56 a.m. eastern time on thursday. >> we'll be speaking to them at 5:00 a.m. eastern tomorrow if all goes well. in less than two hours, rupert murdoch will face parliament with his global media empire and ceo title at stake. the phone hacking hearing is under way as we showed you but there are three witnesses before we get to the main event. that will be murdoch, his son, james, and his former top newspaper executive rebekah brooks. world is waiting to hear from them. that will take place at 9:30 a.m. eastern. >> senior legal analyst jeffrey toobin joins thus morning. anticipation building about what will be asked of them and what rupert and james murdoch will say in return. explain how it is different than a congressional hearing that takes place in the u.s. >> it's different in a lot of

ways. the british constitution which everyone talks about as constitution is an unwritten constitution. there is not the same kind of formal rules. there's not a fifth amendment. witnesses cannot simply refuse to answer on the grounds that it might incriminate them but they can also avoid answering questions on the grounds that it is under inquiry. it's sort of like a fifth amendment but not exactly. they are not under oath so no possibility of perjury charges. >> they are asked to testify on their honor. >> yes. imagine if they had to do that in the united states. how much honor is there? >> we've been talking to people who say very unclear what happens if they do something that's clearly dishonest or clearly a lie in response to a question asked of them by a committee member. >> they are obviously an older democracy than we are but they are not as -- the law is not as clear in a lot of areas there and what happens if their false

statements are not clear. >> in terms of the larger investigation, you have the unexpected death of one of the top whistle blowers, sean hoare found dead. struggled with alcohol and drugs in the past. police are investigating the circumstances of his death. other people are coming forward saying this was a much larger situation than what was previously led to believe. there's questions about payments between police and between reporters. lay out just some of the legal scenarios of just how liable or criminally on the hook rupert or james could be. >> certainly this hearing is largely about the criminal or potential criminal liability of the three witnesses of news international. rebekah brooks has already been arrested in the hacking scandal. james and rupert have not. what will be interesting about this hearing is the difficult task that these three witnesses especially the two murdochs have because at one level they have to acknowledge what everybody

now knows. this hacking was business as usual at the news of the world. this is something that's impossible that they couldn't have known about. on the other hand, they can't get up there and admit to crimes and get arrested tomorrow. so how do you acknowledge the wrongdoing without admitting that you are part of it? i don't know how you do that. i expect they will try to testify at a broad level of generality but these members of parliament know that and they are good questioners. a lot of these members of parliament especially those in the labor party have big axes to grind with the murdochs so this could be an extremely contentious couple of hours. >> often you see whether here or there you see hearings take place because someone has an ax to grind or it's political. at this point the police have been implicated in this whole thing. it becomes complicated as to how important this testimony is. >> sir paul stephenson is testifying. he lost his job. i was in england for the last

ten days. some people are calling this scandal omnigate because so much of english society is involved. the news media, the police, the politicians. all of these politicians. labor and conservative alike. david cameron the current prime minister. gordon brown, previous prime minister. all curried favor with the murdochs. i don't think we can understand the power that rupert murdoch had over there. >> smaller group of elite and they are intermingled. the interesting thing you pointed out is this answering to the legal liability versus public relations. this is a multibillion dollar company. the stock price when i checked this morning was down 17% since before this scandal broke. it's easing minds of shareholders and reputation part that's at stake but the flip side is also as you said they can't implicate themselves criminally. >> what would clearly help the stock price is getting the murdochs out and getting chase

carey, the current chief operating officer, outsider, running the company. kicking rupert murdoch upstairs but rupert murdoch has built this company to pass it onto his son, james murdoch, and keep it in the family. >> is that really passing it on? >> that's the question. can he still pass it on to james? in many respects we know rupert murdoch and he's the most celebrated witness here but james murdoch is really in many respects the key figure today because rupert is at 80 years old cares most about keeping the company in the family. >> we'll be watching closely as you will as well. thanks, jeff. >> we'll be on it all day. >> we want to know what you think about the situation as well. e-mail us, give us a tweet or tell us on facebook and wael read through some of your comments later in the show. >> still ahead, live coverage continues of the phone hacking scandal rocking britain and beyond. you're looking at paul stephenson. britain's top police chief until he resigned on the 17th.

where will media mogul rupert murdoch say when he faces questions about the scandal. brian todd has a look. >> also ahead, a secret meeting with moammar gadhafi's regime. what was discussed and could this be a step toward gadhafi's exit? a radioactive beef scare in japan. we'll tell you about what to look out for and what japanese are doing about it. it's 40 minutes after the hour. and he gives me a variety of options. would you like to have a look at a map, my lad? ah, why not? shall we check on the status of your knighthood? yes. again? yes, again, please! thank you. with my digital manservant, i'll never be homesick again. would you like me to put the kettle on, sir? no, i'd like you to get rid of that ostrich. it's been here a month. [ male announcer ] think, type, go. with just type. only on the new hp touchpad with webos. aren't getting enough whole grain. but actually, it's never been easier to get

the whole grain you want from your favorite big g cereals. from cheerios to lucky charms, there's whole grain in every box. make sure to look for the white check. discover aveeno positively radiant tinted moisturizers with scientifically proven soy complex and natural minerals. give you sheer coverage instantly, then go on to even skin tone in four weeks. aveeno tinted moisturizers.

happening now. japan bracing for heavy winds and a strong flooding as a huge typhoon heads for the country. we talked about this and they are trying to make sure they secure the nuclear plants. packing winds of 100 miles an hour. the storm is 450 miles wide. forecasters say that parts of japan could see close to three feet of rain over the next day. so crews are rushing to install a cover over the damaged reactor at the crippled fukushima daiichi nuke peculiclear plant. the storm is far south of that plant but a forecast track shows it could pass over the fukushima prefecture on wednesday. >> they have banned shipment of

cattle from the region. radiation from the region could contaminate the beef supply. the area is recovering from that nuclear accident at the fukushima daiichi nuclear plant. a bit surprising they are taking that action now. >> you're right. message delivered but not received. u.s. and libyan officials met secretly over the weekend face to face in tunisia but they have different reactions to exactly what this meeting was about. the u.s. says the sole purpose was driving home the point that moammar gadhafi must go as libya's leader. the libyans describe the meeting as a first step toward negotiating an end to the nato campaign that's taking pe ining this country. >> gadhafi going is not on their negotiating table. they're talking. that's good. london's parliament is holding hearings to get to the bottom of the phone hacking scandal. the city's top cop just

resigned, paul stephenson, appearing before british lawmakers and announced his resignation on sunday. >> stakes couldn't be higher when rupert murdoch appears before parliament taking place at 9:30 eastern this morning. reports are already circulating suggesting that his days may be numbered as ceo of news corp. as brian todd reports, it's his former top newspaper executive rebekah brooks who might steal the show today. take a look. >> reporter: arrested. questioned for nine hours and then released, rebekah brooks could play a key role into the investigations of the phone hacking scandal. for weeks she was the firewall between the public's fury and rupert murdoch's family. now that she's an ex-murdoch employee who faces scrutiny from police and parliament, will she bring someone else in news corporation? >> it's difficult to see how rebekah brooks has any interest in blaming anyone in news corporation. she'll fight to clear her own name. >> reporter: itn correspondent

sarah smith says brooks still values her ties to the murdochs or may have her eye on a future editing job elsewhere. she'll answer questions to the best of her ability and won't comment on reports that she has several million dollars coming in severance pay. the list of casualties in the scandal is inchi ining closer te ruling family. top officials paul stephenson and john yates have resigned. andy coulson is out as prime minister's spokesman this year arrested earlier this month. and les hinton is gone. now that rebekah brooks has resigned and been arrested, many observers say james murdoch, chairman and ceo of news corp divisions in europe and asia is on the firing line. it may come down to where else

james murdoch's fingerprints can be found. >> he made it clear that he paid off a huge amount of money to gordon taylor who had his phone hacked and james murdoch made it clear now that he regards that as an error on his part. >> reporter: if it's found that james murdoch knew more about hacking than revealed so far, shareholders and board members may force his father's hand. >> that he change the way the company is structured to stop james from taking over, he would have to listen. >> reporter: other reports that independent board members are going further replacing james murdoch all together. a member of that board called those reports total crap. brian todd, cnn, washington. >> morning headlines are next including the california bounty hunter who now says he will sue casey anthony.

also ahead, can a simple eye exam detect alzheimer's disease up to 20 years early? it could revolutionize the treatment of alzheimer's. 48 minutes after the hour.

here's a look at your headlines. rupert murdoch, his son, james and former chief newspaper executive rebekah brooks are about to appear before parliament to face questions about the news corp phone

hacking scandal at 9:30 a.m. eastern time. right now you are looking at live pictures of the hearings that started about 45 minutes ago and we'll continue to bring you the latest as we find out more about what is going on and the line of questioning that's taking place at the hearing. corporate earnings for the second quarter giving markets a boost boost this morning. u.s. stock futures trading higher right now as investors try to shake off concerns over the debt ceiling talks. in washington and also the debt crisis in europe. a bounty hunter says he is suing casey anthony for $200,000. he helped in the search for caylee in 2008. after seeing the trial, he said he was conned and misled. "american morning" is back after a quick break.

new york city. partly cloudy. looks pretty foggy. up to 92. thunderstorms later today. >> the time of year. the way weather has been. yeah. boy, in our forecast. could an eye exam one day help doctors detect early signs of alzheimer's disease in the brain? scientists from around the world are meeting in paragraph about the disease. they are trying to find clues who may be at risk long before the disease sets in. >> our senior medical correspondent elizabeth cohen joins us from our cnn center in atlanta. we think of alzheimer's as a disease of the brain. what has people so focused on eyes? >> right. i got to tell you, ali, this is so cool and really may change the way that doctors figure out if someone has alzheimer's. i'm going to show you a picture of the back of the eye. these are vessels in the back of

the eye and what they found is that folks who early alzheimer's disease, those vessels changed the width of those vessels changed. and so it's really -- it allowed them to say, hey, we think this person is headed towards getting serious alzheimer's disease and it's easy to see these vessels. it's not a tough thing to do. >> so the key then is that it seems like it's relatively easy as you said. secondly, how soon can they detect these changes? >> they can detect the changes pretty early in the course of the disease, kiran. also it seems to be a better alternative to pet scans and m.r.i.s because they are pricey and technically challenging to do. this is looking at back of the eye and easier and less expensive. it's a much more effective screening tool if it pans to be -- >> who does it work for? >> people in the early stages of alzheimer's. it could be a whole bunch of other things as alzheimer's is

tough to detect. they want to tease out who has alzheimer's and who doesn't. >> they are learning things about what makes people get alzheimer's. there is some connection to brain injuries increasing your risk for alzheimer's? >> right. they actually looked at folks when had brain injuries whether they were veterans or athletes and they found the folks who had a serious brain injury were more likely to go on to get alzheimer's. this is really important because i think a lot of times we think of alzheimer's just like a stroke of bad luck. you know? there is nothing you can do. what they found is that folks who had brain injuries were more likely to get get alzheimer's and that folks who had certain lifestyle issues, for example, if they were overweight or if they smoked, they say half of all alzheimer's cases may be attributable to things like smoking or obesity. if you want to avoid alzheimer's, exercise, don't smoke, lose weight, and if you have depression or you have high blood pressure, treat it. these are things you should be doing anyhow. they are better for your heart and better for everything. it's interesting this computer

model picked up on the same things for alzheimer's. >> that's amazing, though, that whole connection with depression and making sure that you do get treated for that, especially, you know, for men going to the doctor and talking about that is not always easy. >> it isn't always easy. i think sometimes if we talk about depression, if you bring it up with someone, not it's your fault and why are you acting like this. there is no more shame of having depression than having a cold or in having cancer. if you bring it up as a disease, i think that that helps people wale. it takes some of the weight off of them. >> all right. good advice. elizabeth cohen, good to see you. >> thanks. look at the bottom right corner of your screen. we're staying on the testimony going on in british parliament going on right now. it leads to our question of the day. rupert murdoch will face questions about his company's alleged phone-hacking scandal that ranged from celebrities to murder victims. here are some of your responses to our question of the day.

>> yes, this is now bigger than hacking. it's about murdoch press controlling politicians and police with fear and bribes. >> he should not be put in a position to have to know or have to apologize for idiots. keep your comments coming. we will read nor throughout the course of the show. >> your top stories in a minute. [ engine idling ] [ male announcer ] talking a big game about your engine is one thing. having the proven history that can back it up is a whole nother story. unsurpassed torque... best in class towing... legendary cummins engines. which engine do you want powering your truck? guts. glory. ram.

vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote.

u.s.a.a. we know what it means to serve.

parliament 90 minutes from now. murdoch's worldwide media empire and his job at ceo on the line. in britain, celebrity washing tabloid culture contribute to the news corp

hacking scandal, eavesdropping reports first surfaced five years ago. we will ask an expert in all of this, why no one stepped up to challenge murdoch until now, on this "american morning." ♪ good morning. it is tuesday, july 19th. christine romans is off. good morning to all of you. remember following the latest on the hacking scandal. testifying is taking place right now before the britt parliament. a lot of questions this morning when rupert murdoch comes before this committee about what he knew about this hacking scandal. millions will be watching worldwide media empire hanging in the balance when murdoch faces parliament 90 minutes from now. >> we are hearing the former commissioner of the metropolitan police in london who resigned a couple of days ago.

we are waiting for rupert and james murdoch and rebekah brooks testifying. the hearing is under way already. atika, what is the headline out of the hearing so far? >> reporter: well, basically, getting a grilling by the lawmakers about the relationship between his senior officers and news international executives. but, so far, no smoking gun. basically, they are focusing on the hiring of neil wallace, a former deputy of news of the world and he was hired by the metropolitan police as a sort of communications consultant for about a year. now they are questioning about that, because neil wallace was later on arrested for his -- in connection with the investigation into the phone hacking. so a lot of questions being thrown up now. according to paul stephenson, he said they had no way of knowing he was, in any way, involved with phone-hacking allegations when they hired him. he personally did not know of

any reason why not to hire him at the time. he is still being grilled on this issue so there may be more coming out of this yet. >> everything has come up about this already. one of the whistle-blowers in the case was found dead yesterday. what do we know about that? >> that's right. he was basically the only person formally at news of the world who was willing to say, yes, there was a culture of phone hacking at the newspaper and not only that, but that he, himself, had been actively encouraged to hack phone mail messages by andy coulson then the editor and later hired to be the chief spin doctor for dr. cameron. not only did he expose the phone-hacking culture but pointed the finger to andy coulson and 10 downing street connections. the fact his body was found at his apartment, police say it is unexplained at the moment but not considered suspicion uthere

is still an ongoing investigation. >> in 90 minutes, we will hear from rupert murdoch, his son james, and rebekah brooks. >> so many of the elements of this keep getting bizarre as the days go on. news corp has been hacked it looks like. hackers briefly took control of "the sun" newspaper website yesterday. it has been restored but they were able to put up a false news story saying rupert murdoch was dead. there's a lot riding on rupert murdoch's performance this morning because of his days -- there is news -- or rumors that his days as ceo of news corporation may be numbered according to bloomberg news. news corporation is considering replacing murdoch with current ceo chase kerry who you see on the right side of the screen. many insiders say if things don't go well on the stand

today, change to come to the company quickly. >> clearly, it's going to be a tough day for rupert murdoch and his son james testifying. the reality is rupert murdoch is a pretty elderly man. whether he leaves this year or next year or five years, there is talk about succession plans for him. the report from bloomberg chase kerry could step up to be ceo. not out of the question and analysts thinking for days it might happen. >> according to "wall street journal" which is owned by news corporation they have a succession place in plan for murdoch. a company spokesman denies the plan has been accelerated or implemented. it appears that no one seemed terribly alarmed about it the th then. joining us is bonnie fuller, editor in chief of "hollywood life.com.

>> you are vice president of "in touch weekly." so you have a unique perspective of getting the scoop. what how is britain's culture competitive and at times, people say especially vicious. >> i got the words right. it is incredibly competitive and we see now it can be very vicious. now what is different is that there are eight, nine tabloid newspapers in britain. here, most american cities don't have any. so that heated competition puts pressure on those editors to just get the best scoops and there is only so much scoops to go around at any given time. and so i can imagine that the pressure to get those is what led to the situation. >> the other question is, at first, it was talk it was perhaps the work of one rogue reporting doing this hacking or helping in some of the hacking to get scoops. did people not care when it was just a few celebrities? they said, people want to find

out their lives. it doesn't seem to be so outrageous until we heard about a missing girl, her voice mail being hacked and other questions about 9/11 victims and others. >> well, i think that when people first thought there was just one reporter doing this, one or two, that they were had gone beyond the bounds of anything that their editors would have agreed to have them do. listen. people cross boundaries. when it came clear it was far more widespread, of course, people were really upset. now, i do want to point out that we have never seen anything like that here and i think that our culture of both competition and just the journalism culture is very different, as is our actual pop culture and our desire for information. >> that's also interesting. one of the things that jeff toobin, our legal analyst, brought up, he said -- like news

of the world get scoop after scoop, like they did and year after year and people at the top say how did you find this. if some of your journalists were able to get scoop would you know the circumstances of how they obtained them? >> yes. the way that i work, yes, i would know how my -- how my reporters got scoops. but, listen. they had a lot of reporters and they had great scoops for many, many years. so, you know, might not seem unusual to the public they were getting these things. and there's a lot of good reporting that can go on. people can get scoops from developing sources over years, from doing what we would call on the ground reporting where you go to the places that celebrities. the people you're covering are at and you can get scoops that way. i think that perhaps because they wanted the volume, the speed, this is where they got into trouble. >> it also seemed like it was quite easy when you think about it. this connection between technology companies that know

how to do this hacking and how it's pretty easy to get into voice mails. i mean, is the temptation there for -- i mean, do people have to be dialed back and say, listen, this is not what we do to try to get -- because the competition is pretty fierce. >> i can -- i can -- i can only speak for what i know and the organizations. the news organizations that i've worked with would never want anything like this. this is illegal. they don't want to cross boundaries. that's very, very important. >> just seeing this, you've been in this business so long. is this surreal for them to be brought to parliament and facing these questions? already many arrests. some jailed and others perhaps facing charges? >> yes. i mean, it does seem surreal. it's quite incredible. i don't think that, as you mentioned before, when this first came out, nobody imagined that it could go this far, this wide, this deep. >> very interesting. we will watch it and see what happens today as the hearings continue to take place. bonnie fuller, thanks for coming

in. >> thank you. we want to know what you think. did rupert murdoch know about the phone hacking? e-mail us, give us a tweet, tell us on facebook and we will read through some of them later in the show. stay with us. our coverage continues. a live update from london coming up at 8:30 a.m. eastern. it's going from hot to hotter in many parts of the country. a dangerous heat wave heading toward the east coast. heat indexes topping out at 126 at some parts of the countries. rob marciano will join us coming up. michael vick is teaming up with the head of the humane society. two of them on capitol hill today. you can guess why but i'll tell you for sure on the other side. are superman and lois lane breaking up? the latest on the new installment of "superman" and how things are changing.

♪ is that the same weather forecast all over the east coast this morning? >> it seems like it, doesn't it? actually, is it real? oh, yeah, 96 degrees. crazy all over the country today pretty much. right now, 81 in d.c. a little bit later, 96 and thunderstorms. president obama insists there is no progress behind the scenes in the talks to raise the nation's debt ceiling and avoid default 1r5 days from now. house republicans plan to vote today on cut, cap and balance and ties the debt limit increase to passage of constitutional amendment to balance the budget. if it is approved, the president will veto it. >> 66% say the debt ceiling

agreement should include a combination of spending cuts and tax increases. 28% say it should be spending cuts alone. only 3% say it should be tax increases alone. philadelphia eagles quarterback michael vick will be on capitol hill this morning, lending his support to a bill that cracks down on dog-fighting. the legislation calls for stronger penalties against people attending dogfights and cockfights. he will be joined by the head of the humane society. he served 21 months in prison on dog-fighting charges. the crew of "atlantis" waking up to cold play's "don't panic." check it out. ♪ >> they are now getting ready to head home after undocking from the international space station that happened at 2:28 this morning.

lnts will not is schedul "atlantis" is scheduled to touch down early thursday morning. >> the space shuttle crew will join us at 5:00 a.m. eastern. set your clocks. japan's women soccer team are the world cup winners and met with their prime minister today. he congratulated the women on their fairy tale finish. hundreds of fans swarmed the airport in tokyo when the team arrived home last night. japan beat the u.s. women's soccer team in a stunning penalty kick shoot-out taking home the very first world cup title for any asian team. >> it's great for japan. they could deal with good news right now. the women were great by a crowd of supporters when they arrived at newark, new jersey, last night. the second place finishers say think hope their success will kick up more support here in the united states. it was history making in other ways. sunday's match set a new twitter

record. twitter users sent messages 7,000 tweets per second during the world cup finals, more than the royal wedding or the death of osama bin laden. japan is bracing for strong winds and heavy flooding. a typhoon is packing winds up to a hundred miles per hour. the storm is 450 miles wide. huge. forecasters say some parts of japan could see close to three feet of rain in the next day. crews are rushing to install a cover over a damaged reactor at the crippled fukushima daiichi nuclear plant. one forecast from the u.s. navy says it could pass over puke shea that ma on thursday. phoenix is dusting itself off this morning. they are dusting themselves this morning. this giant dust storm also called a haboob shut the city down. it hit during rush hour. 3,000 feet high and driven by wind gusts up to 40 miles an hour.

they say it caused flight delays and snarled traffic but they say it cleared out within an hour. >> rob marciano is here with us. >> the heat continues so if you get a thunderstorm, as long as it's not severe, that will cool you off. the problem is the ones that popped up yesterday, they were severe in places like wisconsin and pennsylvania. strong enough to knock down some trees and power lines and we got pink on that today. over 20 states are in some sort of excessive heat warning or heat advisory, heat watch today. so the heat wave continues to build and in the same spots. 110, 120 is what it will feel like again today. forecast highs for this heat wave what it feels like throughout today, getting up and over a hundred degrees in minneapolis and close to that in chicago. tomorrow, we start to see the temperatures get knocked down and then on friday, the heat wave shifts to the south and the northeast, including d.c. and new york city, will get into the act then. along the stationary boundary not sinking that far to the south the focal point for thunderstorms today in the

afternoon. some of which could become severe. south, hot and dry across texas. dallas, 17 days in a row of seeing 100 plus. tyler, texas, 21 days in a row and sets a record. tropical storm bret doesn't look too healthy on the satellite picture. dry air wrapping in here. vertical wind sheer and not get too much stronger. the forecast for it to continue to go out to sea and become what we like to refer to as a fish storm. no worry about bret the coming days. the typhoon heading toward japan, ma-on, the forecast is for it to skim and out to sea and dump fair amount of rain and wind as far north as tokyo but the brunt of the storm should stay south of the fukushima nuclear plant. latest from here. try to stay cool in new york. slightly drier and cooler for you tomorrow. >> is today the worst of it for the foreseeable close future? >> you get a break today -- or

tomorrow. >> friday is supposed to be bad. >> friday, we crank up the thermostat once again. >> thanks, rob. >> all right. >> take off your jacket, way too hot. >> rob is telling me it's too late by -- i'm already there. oh, rob tells me it's going to rain. >> this is what you wear in a snowstorm and what you wear in triple digit heat. >> what i wear to bed! >> yes! it's like imitating art and winning. charlie sheen returns to tv. based on anger management. the sitcom is now being shot to broadcast and cable networks. the man of steel will soon be back on the market. superman is going to be a bachelor tomorrow in september. superman' his long time love lois lane have been married in the comic book since 1996. >> he is going to be single today? they are splitting? >> yeah. he's a cartoon character so it's not something to be believed,

nor is it to be believed i sleep in this. that was a joke too. >> he has the exact same thing but a flannel. >> a onsie. which chain is closing their doors? gold surges to another record. what is behind the gold rush? "minding your business" next. ooo whatcha got there? uh oh, sesame stir fry from lucky dynasty. oh, me too! but mine's lean cuisine, so no preservatives. [ female announcer ] lean cuisine has 90 dishes with no preservatives and quality ingredients like farm-picked broccoli and tender white meat chicken. lean cuisine. it's actually a connecting rod coming out to the side of the block this is a big piece of the engine block that was blown off. it's not because they ran it out of oil. they didn't change the oil. as your engine produces different particulants, you want to pick that up and take it down to the oil pan to the oil filter. so the moral of the story is, if you don't want to see your

engine in a commercial with me and jim, make sure you get the works done. the works. oil change, tire rotation, $29.95 or less after rebate. only at your ford dealer. this good. this not

23 minutes after the hour. "minding your business." in the wake of uk phone-hacking scandal rupert murdoch may be on the way out as ceo of news corporation. bloomberg news reports the company is replacing him with chase kerry. if he is ousted he will reportedly remain with the company as its chairman. u.s. stock futures trading higher right now. investors sorting through second quarter earnings reports coming out this morning including goldman sachs announcing second quarter earnings low than expected and stock taking a hit down more than 3% in premarket trading. good news at coca-cola, however.

the company's earnings came in better than expected and bank of america announced about an hour ago that it lost nearly $9 billion in the quarter. the bank says due to a recent mortgage security settlement. gold prices set a new record on monday settling above $1,600 an auns for the first time ever. amazon tapping college textbook market by renting textbooks on kindle e ereader. borders could not get a buyer to save it from bankruptcy and will announce they are liquidating. more than 10,000 people will lose their jobs. david cameron is on the ropes. can he survive the murdoch scandal? zain verjee is live in london next. "american morning" is back after the break. while energy developement comes with some risk,

north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems and using state of the art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment we are america's natural gas.

we are still taking a look at the live hearings in parliament and hearing from the former of the head who retained july 17th, this is sir paul stephenson, britain's former top police chief, answering questions by members of parliament about this phone-hacking scandal. we are waiting one hour but i'm wondering if this is going to get pushed back. >> he is talking a lot and two more people to testify before rupert murdoch. >> rupert murdoch to answer questions at 9:30 but they have to go through the public affairs for scotland yards who resigned and former commissioner of the metropolitan police as well so we could be actually moving this a little bit back because of how long this questioning is taking place. we will hear from james murdoch and the former news corp executive rebekah brooks who will be appearing before parliament. the got under way 90 minutes

ago. reports circulating that rupert may be moving up the succession plan. bloomberg news reporting he may be leaving as the ceo. >> "wall street journal" pushing back on that saying a succession plan is in place and they are not necessarily accelerating it as a result of this. two days after announcing his resignations paul stephenson said he decided to step down to avoid becoming a distraction. listen to this exchange when he was asked about the cozy relationship that seemed to have exit between scotland yard or the metropolitan police in london and the tabloids. >> you had 18 lunches or dinners with the "news of the world." and that you had seven or eight dinners with mr. wallace himself over about a five-year period. can you explain to us why that was necessary to have that amount of lunching and dining with the "news of the world" and

news international and did the same thing happen with other newspaper groups? >> there is a reason why the metropolitan police commissioner meet with the gra media with th promote and context of policing and trying, if you will, make sure there is a relationship there. what i would say, coming out of this inquiry and coming out to this matter, it is quite clear to me that actually we need to change the way we do it. i've already put in place, although i'm right at the ned of my term now, i've already put into place changes we have to do this because i think we need to be more transparent and explain what we are doing better. >> tough questions. he is getting grilled. he is not being combative in his responses but he is being very detailed. stephenson also got grilled about claims that his department actually ran interference for rupert murdoch's reporters and tried to get other media outlets to ignore the eavesdropping allegations. >> did you put pressure on mr. -- or anybody else at the

garden to lay off the phone-hacking story? >> i didn't put pressure on lay off. they continue to see -- while i was getting assurances that actually there was nothing new in this. they seemed to disagree so it seemed entirely appropriate. i meet with them and actually represented to them what i was being told and that is that this was nothing new and i have no reason to start the first inquiry. they were clearly not going to listen to that. >> all right. just an update on the hearings. rupert murdoch and james murdoch and rebekah groops will be before a different committee in a different area of parliament so it will be at 9:30 eastern time in the uk. murdoch will be facing questions about the phone-hacking scandal. how he answers them, though, could determine whether he survives as news corp's ceo. >> cries growing louder for david cameron to step down. even he is involved in this

thing. quite complicated. zain verjee, so our viewers remember what the connection is, tell us how david cameron is connected to this and what his odds are of making it through this unscathed? >> reporter: many experts think he will be able to survive but, boy, he is under some serious pressure here. who links when you consider david cameron. he is alleged to have a cozy relationship with rebekah brooks, going to her country home and riding horses together and allegedly inviting her to his 44th birthday. so it gives the optics of a very cozy relationship that has existed between british politicians and "news of the world" and other tabloid and rupert murdoch's newspapers here in this country. the other relationship is with a guy called andy coulson who was the former editor of "news of the world." he has been accused of encouraging the hackings going

on. what david cameron did was hire him even when people warned him, don't hire this guy as your chief media spin doctor. he did anyway. now people are going what kind of judgment does david cameron have? so he is trying to do damage control and he has launched an inquiry and said it will be led by a judge and he is flying back from africa and cutting his trip short and an emergency session here in parliament tomorrow. >> there was one of the first whistle blowers by the name of shaun hoare who was found dead yesterday and they are looking into the circumstances of his death. >> reporter: this is taking another dark turn here. he is dead. the police are saying this was than unexplained death. they are insisting his death is not suspicioususpicious. this is one of the first journalists to blow the whistle

on "news of the world" saying phone hacking was going on. he alleged that andy coulson was the guy encouraging journalists "news of the world" to do it. this is a dark turn. it's raising some serious questions. we need to wait and see what the postmortem says, if there was any foul play. >> zain will continue to covering this. we are waiting for the big event to start at 9:30 a.m. eastern. zain, thanks very much. coming up next, texting while walking is now a crime in one major east coast city and cost you money if you're caught. this will be causing trouble for me. a city i hang in around a lot. on overrate teenagers overlooked even by doctors? chris powell from "extreme makeover" joins us next. [ male announcer ] get ready for the left lane. the volkswagen autobahn for all event is back.

right now, get a great deal on new volkswagen models, including the cc. and every volkswagen includes scheduled carefree maintenance. that's the power of german engineering. right now lease the volkswagen cc sport for just $289 a month. ♪ visit vwdealer.com today.

wef been telling you about a report this morning from bloomberg news, a plan to replace rupert murdoch as the ceo of news corporation may be under way. they the plan was to replace him with the company's chief

operating officer kerry. rj rj saying it is not true, they have a succession plan in place and would not comment on this one and say they are not accelerating it as a result of this. we have contacted news corporation again and they have told us senior news corporation official has said to cnn as you would expect the board has had a plan in place for some time and sugarions thsuggestions a plan being incorporated is inaccurate. they say there is not a change in place and it is not being accelerat accelerated. >> particularly normal when you have somebody that big at the head. no spring chicken, by the way. it's wise to have that in place. >> it would be naive to think there aren't questions in general. i mean, any time a company is dealing with scandal, whether there is, you know, alleged wrongdoing or not, when you see a stock price fall which we have seen in double digits since the

scandal broke, obviously, there are questions and discussions put they are shooting down the notion there is a replacement. >> there must be conversations going on somewhere about this. watch where you're going, by the way, or you could be in trouble. i spend a great deal of time in philadelphia and it is planning to crack down on texting while walking. pedestrians could face $120 fine for looking down at their phones while they are walking and cracking down on bad behaviorally drivers and cyclists, too. i totally get the drivers and cyclists p.m. i'm one of these people, if the road ends in front of me, i would fall off. >> people listen to their ear phones while driving and while jogging with their ear buds in, on and on and on. >> it is rare but you hear of somebody who walked off a curb and got hit by a car or something. that is kind of a wasted way to go. i suppose if you're just saving

a handful of lives by it, maybe it's not a bad idea. i am probably going to get a ticket, though. >> i think where do they draw the line. >> good question. if you think your mom just joined facebook to spy on you, you're probably right. 50% of parents say they join facebook to keep tabs on their children. another 5% say they would do this if only they knew how! here is one to keep an eye on, though. 1 in 3 american kids and teens is either overweight or obese. childhood obesity is now the number one health concern among parents in the united states. that tops drug abuse and smoking. >> our next guest specializing in helping very obese people lose weight and learn the lifestyle changes to help keep that weight off. kiss powell is joining us now. great to meet you in person. >> such a pleasure. >> you do great things for people. >> thanks for having me. >> if i'm sitting at home and a parent what do you consider

obese? some parents don't think they are kids are. >> bmi over 30, overweight is like when you start float baggage 25. so, you know, it's -- it's such a tricky thing. the relationship between parents and their teens. already communication is volatile. and so it's like how can these parents effectively communicate with their teens? and in my experience, i found that often these concerned parents, as much as they love them, they still make all of the wrong moves and they nit-pick or they are constantly highlighting what their teen is doing or they are talking about their weight. do not focus on their weight. it's so important that we actually focus more on their health and their fitness. there's a study that just came out about doctors, right? >> pediatricians are sort of missing the chance as well to bring this up. it is a super touchy subject. as a doctor, it's howl the parent and the kid, everything you musting doing is wrong because your child is not healthy. it's devastating. >> it is, the. i can promise you already.

these -- so many of these kids are aware. granted we were talking about this. some of them aren't but many are. and they are feeling inadequate about it. when a parent goes ahead and highlights that, now we're starting to stoke a flame for food obsessions. eating disorders. so it's a very delicate balance. very delicate balance and so much more important for a parent to be a kaech and not so sit there and tell them you need to do this, you're obese, you need to focus on your weight. >> whap if you have people in the same household and eat similarly and your kid has a bad metabolism and they are getting fatter and you're not. you have to do things based on how your body processes it? >> the thing we use in the industry is jeanetgenetics load gun. if you're the parent in the household that is your child. they are dealing with a similar gene structure. however, something is happening in their lifestyle. keep in mind also the most

influential aspect in their life is going to be their social group. you are talking teens here. so we need to look at the social group and where so much of ourus needs to be. we are talking about doctors speaking with the children about the risks of obesity which is fantastic. we shouldn't bury our heads in the sand, they need to know. at the same time, we need to start talking prevention and focus on programs in schools. talking to these kids about just the benefits of health and fitness because that is where the social group is and where the daily influence will be on our children and where everything needs to be for them. >> in the meantime, i guess we can do things to make it easier around the house for the kids. you can't dip into a bowl of ice cream and tell your kid to have carrot sticks. you have to have that environment at the house. >> create an environment is the first thing you do. also i find most of the time, usually with overweight teens and overweight children, the parents are living that lifestyle too. one of the best things to do is be that change that you want to see in your child. >> what mostly causes this obesity? is it lifestyle?

lack of physical activity? or is it intake of food? >> both. absolutely both. of course, we have seen all of the stats. we know kids are far more sedentary today than ever have been. the food intake and process foods they are consuming is through the roof on top of all the chemicals and playing this hormonal tragedy in our bodies. >> when you guys do this on your show, i know you have a new show coming out, the new season of the "extreme makeover weight loss" edition you guys sort of wiped the slate clean for people and they have to add in things. a lot of people are shocked to see what they -- exercise not -- i mean, exercise need to be a part of the daily routine. how do you get these kids to change? >> we address the emotional and psychological issues first. most of the folks i work with they came from being overweight and obese teens. going back and changing the behavioral patterns is a challenging thing but the folks i work with truly desire that change and waking up to the fact they are at risk:

>> the best part they take it back. one year, they go back to a healthy weight. >> you say focus on the positive and don't focus on the weight. at some point, is there any point to say, look, kid, you eat too much, you do nothing, you're getting fat? >> yes and no. that's actually -- it's a great position -- it's a great position. >> rhetoricallrhetorically. >> great position to take for a parent but the parent needs to be a coach and focus on the positive focus and living a fit and healthy life. my wife and i, we have three kids and what we focus on and it's cool for them to be fit and healthy. they love it. we reward them and important they get that because we don't want to deprive them on anything but it's such a delicate thing. >> we should know. we were surprised when we find out how many teaspoons are in a regular coke. >> without you. you know these things and you tell me. without you, i would not know.

i live in blissful ignorance. >> you hit on it. it's education, education. we need more programs in our school and the direction we are going with. >> i love your guys' show. extreme makeover weight loss edition, you're always helping people out. chris, thanks so much. >> thank you. women's soccer team has come home. heads held high. three of the players are joining us live.

.

♪ ♪ got to be good life

going to be good life ♪ >> it is fair right now in new york city. >> tell me what that means? >> fair? >> yeah. >> it just is. >> it isn't going to be later on. >> the thunderstorms roll in, 92. and you forgot your umbrella. >> i have to rush out of here when i leave and get one! we found that new respect, actually some of us had respect. >> i said on this show, we were fully respecting the women's u.s. soccer team. >> everybody was watching on sunday. the world was watching. after a hard-fought and heartbreaking game against the japan. the u.s. lost the game in a penalty kick shoot-out. despite that loss, the u.s. women's soccer team has come home for a broadening fan base who loved following them throughout the tournament. >> three of the players join us right now. i got chills. great to have you all here. congratulations. i hope you felt when you landed

at newark yesterday and you had those crowds greeting you that you really did america proud. >> we felt it. we landed and we walked out. it was disappointing to come back with second place but at the end of the day, we made america proud. >> sure. >> warm welcome coming home and the fans, coming through the hotel. it was pretty amazing. we realize as the day goes on out incredible the whole tournament was. >> megan, you had 27 shots versus japan's 14 and you made 27 shots and twice within minutes of winning. 1-0 at the beginning and 2-1. what was it like? i imagine just a series of highs and lows while that game was happening. >> yeah. the game felt like days long. i mean, it was like so many games within the same game. i mean, that's football really. they never gave up. so much credit goes to japan. what an unbelievable team they are. i mean, they deserve everything they have. not that we wouldn't of deserved it if we would have won, but we're happy for them in that

sense. it seems like, you know, we have kind of caught fire here and we're really proud to come home and, you know, to have everybody on board with us with such a special world cup. >> so many boys and girls ten years from now will be talking about where they got their start and why they started playing soccer. carly, you're a goaltender. hope solo said, i'm paraphrasing but she was talking about japan being able to win and after everything they have gone through. it was very generous. while it's bad to lose, at least losing to japan, you know their country gets something to celebrate. >> yeah, it is. a time where they have needed it most, you know? i think that is really helped them. you know, it's unfortunate we came away with second, but, you know, all of this media, all of the support has put things in perspective for us and help us overcome not getting first place. >> you were shocked about the penalty kick you maid because it

sailed over and never happened to you, hitting the crossbar. is it fair it comes down to the penalty kicks which is did? >> i don't think it does. that is the cruel game of soccer. you can't really base a performance off pk. i think what we did in that final game was probably the best soccer that we have played, ball on the ground, possession style against one of the best possession style teams and i'm proud of my teammates for that. >> you -- did you get any sense, any of you can answer this, as this was developing, the degree to which the world was watching this in a way that they haven't in previous years? >> i think after that brazil game, the drama, the excitement, you know, the back and forth and winning on pks. after that game, i think it really is set in that, you know, america is really behind us, the support, all of the e-mails, you know? the tweets. everything that was going on was pretty amazing and at that point we realized we're in this tournament, you know? >> i know. >> and going on to the semis and beating a great team and france and then to the final.

>> also, i mean, in 1u9 the glory year and everybody watched that. but it's different. the records are being set and the amount of people that are aware of soccer around the world. they said 7,000 tweets a second were going on about your game when it was happening. how has that changed for you guys? how much interest there has been worldwide? >> tremendous interest just in the zone and the global awareness. i was on that team in '99. it was like we were america's sweethearts. this time it was like you can feel the passion with all of the other countries and the support and, you know, the game has grown and, you know, the development and, you know, amazing just to be a part of such a wonderful tournament, you know, germany put on a great tournament and a great show and just the attention from worldwide was absolutely amazing. >> you were in that -- the 1999 world cup final. we talk about that a lot here, because these are now sort of the two book ends that, as i say, will really influence people to play the sport. >> yeah. i think in '99, america was

really ready to embrace the team and a team support. we accomplished that in 1999 and we have grown throughout that process. the sport has gotten better. now in 2011, make it to the finals. it's so hard to make it to a world cup final. >> two daughters. >> yeah, inspiration just to come home and the girls, my little girls to come with a smile on their face and red, white, and blue and so inspiring for the young kids. >> what is next for you guys? >> olympic qualifier and hopefully qualify for that and on to london to defend our gold medal. >> what is the immediate future, carli? >> well, before i retire, i want to win a world championship. i hope i can continue that. we have accomplished so much. i mean, the roads that we have taken, it's unfortunate we didn't win against mexico to qualify for the world cup. we had to play italy twice. we have had so many bumps in this road and i can't tell you how proud i am of everyone on

this team. pr, coaching staff. we just never had any doubt. we believed in one another and it's something great to say we reached the world cup finals. >> absolutely it is. >> you guys are an inspiration and thank you for taking time. i know you are busy. >> we keep on believing in you and we will be there to support you. congratulations. >> thank you. >> we will take a break. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, this is pretty good. [ male announcer ] half a day's worth of fiber. fiber one. if you have painful, swollen joints, i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis,

lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. get back to the things that matter most. good job girls. ask your rheumatologist if enbrel is right for you.

this is cnn breaking news. you're looking at live pictures from the united kingdom. a hearing room at parliament where the former head of the london metropolitan police agency is testifying. there are three former police officers who will be testifying before this committee. in 30 minutes, rupert murdoch and his jon james and rebekah brooks will face questioning from another parliamentary committee. cnn will have this coverage all morning. >> rupert murdoch on the hot seat as he answers questions about what he knew about this growing phone hacking scandal.